VEHICLE LOANS

Enable customers to purchase Vehicle for personal use [Two Wheeler or Four Wheeler]

Quantum Of Finance

Cost of the Vehicle less Margin. The cost of registration, Insurance, Life time tax may be included in the total cost.

Margin & Security

Category

Limit Rs.

Margin

Security

All category of borrowers

upto Rs. 50,000

10 %

Primary: Hypothecation over vehicle to be purchased.Collateral: Third party guarantee

Salaried class

Above Rs.50000 upto Rs.5.00 lakhs

25 %

Primary: Hypothecation over vehicle to be purchased.Collateral: Third party guarantee.

Other IT payees

Above Rs.50000 upto Rs.5.00 lakhs

35%

Primary: Hypothecation over vehicle to be purchased.Collateral: Third party guarantee

All category of borrowers

Above Rs.5.00 lakhs

25 %

Primary: Hypothecation over vehicle to be purchasedCollateral: Mortgage of land/ Immoveable property. OR
Pledge of NSCs for the Value of the finance. OR
Assignment of LIC Policies with Surrender Value equal to the Value of the finance.

Insurance

Assets created out of the Bank loan should be insured with Bank clause. The policy should be kept in force for the period of the loan.